Formula:
The Home Budget Planner uses the following formulas:
- Total Income = Sum of all Income Sources
- Total Expenses = Sum of all Fixed Expenses + Sum of all Variable Expenses
- Net Savings/Deficit = Total Income - Total Expenses
Where:
- Income Sources are all monetary inflows (e.g., salary, freelance income, dividends).
- Fixed Expenses are costs that generally stay the same each month (e.g., rent, loan payments, subscriptions).
- Variable Expenses are costs that fluctuate based on usage or choice (e.g., groceries, entertainment, transportation).
- Net Savings/Deficit is the amount of money left over (savings) or short (deficit) after all expenses.